Scotland's Budget: Draft Budget 2017-2018

Chapter 12 Culture, Tourism and External Affairs

PORTFOLIO RESPONSIBILITIES

The Culture, Tourism and External Affairs portfolio seeks to promote Scotland's interests at home and abroad through European and International affairs. It contributes to delivering Scotland's economic ambition by investing in Scotland's unique heritage and culture, and its capacity for inspiring creativity and developing a compelling tourism offer.

It protects and provides access to Scotland's historic environment, promotes the delivery of high-quality places and buildings to support Scotland's communities and delivers major international events to attract visitors and build trade links.

Our ambition is for the portfolio to support and raise the profile of Scotland at home and abroad and attract increasing numbers of visitors. Our work is predicated on the belief that culture sits at the heart of our quality of life and well-being, empowering, enriching and shaping our communities.

The portfolio helps to ensure our diverse and evolving cultural heritage thrives and is celebrated and that our historic environment and our world-class collections are cared for and enjoyed by new and diverse audiences and future generations right across Scotland.

The portfolio seeks to make Scotland a destination of first choice for visitors, providing a perfect stage for world-class events and supporting our tourism industry, including our small and medium-sized enterprises ( SMEs), to maximise the contribution of the visitor economy to Scotland's prosperity.

OUR PRIORITIES

The Scottish Government continues to deepen its relationships with key countries in the pursuit of furthering sustainable economic growth in Scotland, increasing Scotland's profile on the world stage and contributing as a good global citizen towards the achievement of the United Nations ( UN) Global Goals.

The outcome of the European Union ( EU) Referendum on 23 June 2016 significantly alters the context for the Scottish Government's international engagement. In light of the result of the Referendum, we will be seeking opportunities to continue Scotland's relationship with Europe in order to protect our interests and our position in the world. We are determined to protect our place in Europe and are exploring all options to do so. Beyond the European Union, we will promote the message that despite the current uncertainty, Scotland remains open for business.

Active engagement in the EU, and internationally, makes a major contribution to the Scottish economy, securing trade, as well as increasing public investment in agriculture, structural funds and research and development. Irrespective of the Referendum result, the Scottish Government is also committed to increasing Scotland's return on EU competitive funding programmes and seconding staff to key European institutions to extend our knowledge base. Scotland's leadership in areas such as climate change and renewable energy contributes substantially to Scotland's attractiveness as a destination for inward investment.

The Scottish Government's key international priority is to deliver, as far as possible, an increased level of engagement with the European Union and its member states, strengthen our role as active members of the British-Irish Council and continue to enhance Scotland's reputation as a good global citizen through our international development agenda.

The First Minister has made clear that tackling poverty and inequality in Scotland is one of this Government's central aims and the Scottish Government is clear that inequality and poverty is not restricted to our borders - it is a global issue that needs a global response.

Scotland has always been an outward-looking nation, embracing the world beyond our borders and making a contribution to the international community. International development is of course a key tenet of that, making distinctive contributions in addressing global challenges such as climate change, tackling inequality and promoting human rights, and sharing our knowledge, skills and technical expertise for the global good.

Through our Major Events budget, we will support the successful delivery of the new national events strategy in order to develop and grow a flourishing, innovative and competitive events industry. This will enable Scotland to further enhance and sustain an inspirational programme of events each year that generate business, create jobs and boost the economy whilst delivering benefits to all of Scotland's communities and build on our nation's strong reputation and international attractiveness.

In 2015 spending by tourists in Scotland generated around £11 billion of economic activity across Scotland. As a destination, Scotland must ensure that it remains welcoming to visitors from across the globe.

Accommodation and food service activities supporting tourism account for 7.7 per cent of all registered enterprises and 9.7 per cent of employees across Scotland, predominantly in Small and Medium Enterprises. Small towns across Scotland and remote rural areas are especially reliant on tourism for employment. Tourism SMEs will continue to receive public support to develop, grow and provide sustainable employment.

We will continue to strengthen our culture and heritage infrastructure through new investment in public-facing capital projects such as the Kelvin Hall refurbishment and the Scottish National Gallery expansion so that engagement in culture is increased.

The Scottish Government is a strong supporter of the National Museums and Galleries and Library, recognising their valuable contribution to the preservation of Scotland's cultural heritage. These National Collections are making an important contribution to Government priorities, particularly in terms of economic contribution and widening access and participation. Across Scotland our 460 museums and galleries attract around 25 million visits per annum, generating over £79 million for our economy and sustaining over 3,500 tourism-related jobs.

We will continue to support the growth of our screen sector and our creative industries. The Scottish Government is committed to delivering an improved service to the screen sector, working with a range of bodies to create and sustain the conditions for investment and growth. To enhance support for the sector, a dedicated screen unit will be set up within Creative Scotland in the next year.

Scotland values its creative talent and provides opportunities for that talent to develop and thrive. Our continued investment in the arts and culture through Creative Scotland and the five National Performing Companies will help ensure that Scotland's unique culture reaches a wide audience at home and abroad.

The Scottish Government is committed to delivering arts for all, and to giving every young person in Scotland the opportunity to access and engage with the arts, helping them to reach their full potential. The Youth Arts have an intrinsic merit, but they also boost the skills of those who participate, helping to tackling inequalities and make Scotland a stronger, fairer and more inclusive society. We are working with a range of partners to create opportunities to get young people involved in art and culture including under the umbrella of Scotland's Youth Arts strategy, 'Time To Shine', and supported by initiatives such as Sistema Scotland.

Public libraries play an important role in tackling inequalities and raising attainment. They bring real social benefits to people and communities. They offer crucial support to help people help themselves - to support literacy, digital participation, learning, employability, health, culture and leisure - to improve the quality of people's lives and support them to engage in the democratic process. We will therefore continue to invest £450,000 in the Public Library Improvement Fund.

These measures all help ensure that no-one's background is a barrier to taking part in cultural life and giving young people all over Scotland a chance to take part in culture and the arts.

The historic environment is a vital part of our heritage, our national and local stories and our communities. It is also hugely important to the national economy, supporting over 60,000 jobs and contributing £2.3 billion to the national gross value added ( GVA). It is the destination for a fifth of all school visits in the country. Its continuing care and regeneration creates local employment, supports local businesses and secures the future of precious indigenous craft skills. It enriches the quality of our lives and helps to define who we are.

As the lead public body for Scotland's historic environment, Historic Environment Scotland ( HES) will ensure Scotland's historic environment makes a strong contribution to the cultural, social, environmental and economic wellbeing of the nation and its people. It requires careful management which is why Historic Environment Scotland is working to develop a national Infrastructure Investment Plan for Scotland's built heritage.

The National Records of Scotland's ( NRS) priorities for 2017-18 will have a strong focus on developing its Digital Services. NRS will deliver the first element of its new Digital Preservation Service, ensuring information of historical importance produced in digital format can be preserved for posterity, and it will also provide improved and expanded access to its rich set of records through a new ScotlandsPeople web service. NRS will also continue work towards delivering the next Census in 2021. The programme will move to a build and test phase in 2017-18 with a variety of formal procurement processes expected to be commenced.

Table 12.01: Spending Plans (Level 2)

Level 2	2016-17 Draft Budget £m	2016-17 Budget £m	2017-18 Draft Budget £m
External Affairs*	13.8	13.4	15.8
Culture, Tourism and Major Events*	205.6	212.9	226.2
Historic Environment Scotland	45.0	44.8	45.5
National Records of Scotland	28.4	28.4	37.3
Total Level 2	292.8	299.5	324.8
of which:
DEL Resource	260.4	263.2	292.8
DEL Capital	27.4	31.3	27.0
Financial Transactions	5.0	5.0	5.0
AME	-	-	-

*Comparators here and in Tables 12.02, 12.03, and 12.04 have been restated to recognise that Major Events and Themed Years moved out of External Affairs into Culture, Tourism and Major Events during the course of the year.

Table 12.02: Spending Plans (Level 2 real terms) at 2016-17 prices

Level 2	2016-17 Draft Budget £m	2016-17 Budget £m	2017-18 Draft Budget £m
External Affairs	13.8	13.4	15.6
Culture, Tourism and Major Events	205.6	212.9	223.0
Historic Environment Scotland	45.0	44.8	44.8
National Records of Scotland	28.4	28.4	36.8
Total Level 2	292.8	299.5	320.2
of which:
DEL Resource	260.4	263.2	288.6
DEL Capital	27.4	31.3	26.6
Financial Transactions	5.0	5.0	4.9
AME	-	-	-

External Affairs

Table 12.03: More Detailed Spending Plans (Level 3)

Level 3	2016-17 Draft Budget £m	2016-17 Budget £m	2017-18 Draft Budget £m
British Irish Council	0.1	0.1	0.1
International & European Relations	13.7	13.3	15.7
Total	13.8	13.4	15.8
of which:
DEL Resource	13.8	13.4	15.8
DEL Capital	-	-	-
AME	-	-	-

What the budget does

The External Affairs budget supports the promotion of Scotland and its interests at home and abroad in pursuit of sustainable economic growth. It contributes to the positioning of Scotland on the world stage as a good global citizen, particularly through our international development work and recent work with the UN and women from international conflict zones, and promotes Scotland's international engagement through Ministerial visits. The budget also supports the attraction of talented and skilled individuals to live, study and work in Scotland.

In 2017-18 we will:

• seek to increase the level and frequency of Scottish engagement with EU institutions to advance our policy objectives, develop our expertise in European affairs and increase our return on EU competitive funding programmes;
• participate to the fullest extent in negotiations on the UK's future relationship with the EU, ensuring that Scottish interests are protected and promoted;
• continue to take action to help tackle poverty and inequalities in relation to some of the world's poorest and most vulnerable people in areas of Malawi, Zambia, Rwanda and Pakistan, through an increased £10 million per annum International Development Fund ( IDF);
• launch and manage a new £1 million per annum humanitarian aid fund from spring 2017, enabling us to continue to respond to the increasing number of rapidly emerging international humanitarian crises;
• renew our historic partnership agreement with the Government of Malawi which is based on 150 years of shared history and friendship and promotes the enduring values of tolerance, fairness and equality and the sharing of experiences and skills for mutual benefit;
• fund training for women from International Conflict Zones to give them the skills and confidence to maximise their contribution to building a safer world by involvement in UN peace processes; and
• strengthen and deepen our engagement with the US, Canada, Japan, China, India and Pakistan, with a focus on education, business and culture.

Culture, Tourism and Major Events

Table 12.04: More Detailed Spending Plans (Level 3)

Level 3	2016-17 Draft Budget £m	2016-17 Budget £m	2017-18 Draft Budget £m
Creative Scotland and Other Arts	52.6	45.7	52.1
Cultural Collections	78.6	80.6	77.0
National Performing Companies	22.9	27.9	22.9
Tourism	49.1*	46.1	43.9
Major Events	2.4	12.6	30.3
Total	205.6	212.9	226.2
of which:
DEL Resource	179.5	182.9	203.1
DEL Capital	21.1	25.0	18.1
Financial Transactions	5.0	5.0	5.0
AME	-	-	-

*VisitScotland's net resource budget for 2017-18 is maintained at exactly the same level as in 2016-17. This figure for 2016-17 includes £5.44 million of Strategic Forum savings that have in recent years been collected from VisitScotland's budget in-year. Those savings have now been taken from the baseline for 2017-18, leaving the net position unchanged.

What the budget does

The budget contributes towards enhancing the quality of life for individuals and communities throughout Scotland by creating the conditions which enable artists to flourish and as many people, groups and organisations as possible to benefit from and enjoy our culture and heritage.

Our rich culture is not only valuable in its own right, but participating in creative activities such as making, or engaging with, music or art can lead to a broad range of positive personal, social and economic benefits.

Creative Scotland supports the arts, screen and creative industries across all parts of Scotland by helping creative ideas to develop and flourish. These sectors contribute billions of pounds to the Scottish economy each year and support thousands of jobs across the country. The Creative Industries is a key growth sector and contributes more than £6.5 billion to Scotland's economy.

The budget supports free access to our National Galleries and Museums so that enjoying the nation's treasures does not depend on personal wealth.

The budget also supports the work of VisitScotland as Scotland's national marketing body in taking a collaborative and inclusive approach to promoting Scotland as a world-class visitor destination and in delivering the national tourism and events strategies with the aim of growing tourism's net contribution to the economy.

In 2017-18 we will:

• work with our enterprise agencies and other key tourism stakeholders to promote the South of Scotland as a tourism destination, recognising the particular challenges faced by the region, its communities and its businesses;
• work with a wide range of partners, to ensure the delivery of the ambitions for the 2018 Year of Young People to celebrate the very best of Scotland and its young people. A programme of cultural and educational events and activities, co-designed with young people themselves, will be held across the country that will celebrate Scotland as a great place for young people to grow up in and mark their important contribution to Scottish society;
• provide funding for Scotland's annual Winter Festivals programme and individual events and activities that further develop Scotland's wide and diverse events portfolio and the events industry;
• in line with the Programme for Government, we will continue to provide support for partners in the planning and delivery towards the 2018 European Championships, the 2019 Solheim Cup and EURO 2020;
• develop a national Culture Strategy for Scotland with stakeholders from across the sector. This will establish a high level framework of agreed aims and objectives with the principles of increased access, equity and pursuit of excellence at its core;
• continue to support our cultural infrastructure - by investing to deliver improved public facilities, including further new development at the Scottish National Gallery, and enhanced digital access to the collection;
• continue with our investment in the V&A Museum of Design in Dundee, the National Library of Scotland Causewayside refurbishment in Edinburgh and a further contribution to the Kelvin Hall in Glasgow;
• use a newly established Creative Industries Advisory Group to advise Ministers directly on the support these industries require; and
• continue our support for the Film Production Growth Fund through Creative Scotland.

Historic Environment Scotland ( HES)

Table 12.05: More Detailed Spending Plans (Level 3)

Level 3	2016-17 Draft Budget £m	2016-17 Budget £m	2017-18 Draft Budget £m
Operational Costs	81.6	81.4	84.8
Capital Expenditure	3.4	3.4	5.6
Less Income	(40.0)	(40.0)	(44.9)
Total	45.0	44.8	45.5
of which:
DEL Resource	41.6	41.4	39.9
DEL Capital	3.4	3.4	5.6
AME	-	-	-

What the budget does

HES is the lead public body for the historic environment in Scotland, and takes the lead in delivering Scotland's historic environment strategy Our Place in Time, in addition to having delegated responsibility for the care and management of Scottish Ministers' Properties in Care. A significant portion of the grant-in-aid funding which HES receives is passed on to Scottish communities by way of grant schemes which fund the regeneration of Scotland's town centres and the repair of historic buildings. Between 2006 and 2016, grants amounting to £140.6 million assisted repairs to the historic environment of over £591.3 million, evidencing the significant leverage that historic environment investment can deliver.

In 2017-18 HES will:

• promote and deliver a range of events in support of Scotland's year of history, heritage and archaeology;
• continue to offer grant support to deliver benefits for communities by helping regenerate and promote the active use, care and maintenance of the historic environment, broadening access to it, promoting sustainable economic development and reinforcing local identity and sense of place;
• provide expert advice and guidance to encourage informed decision-making and achieve the right balance between conservation and sustainable change;
• promote learning and education to enhance knowledge, understanding and enjoyment of the historic environment, delivering learning programmes linked to the Curriculum for Excellence, to National and Vocational Qualifications and to opportunities in further and higher education; and
• maintain our funding for the Historic Environment Scotland external grants scheme at existing levels.

National Records of Scotland ( NRS)

Table 12.06: More Detailed Spending Plans (Level 3)

Level 3	2016-17 Draft Budget £m	2016-17 Budget £m	2017-18 Draft Budget £m
Operational Costs	31.3	31.3	39.8
Capital Expenditure	2.9	2.9	3.3
Less Retained Income	(5.8)	(5.8)	(5.8)
Total	28.4	28.4	37.3
of which:
DEL Resource	25.5	25.5	34.0
DEL Capital	2.9	2.9	3.3
AME	-	-	-

What the budget does

National Records of Scotland's budget supports the collection, preservation and production of information about Scotland's people and history. This includes performing the registration and statistical functions of the Registrar General for Scotland, for example by taking the census and producing a wide range of demographic data which underpin public sector spending decisions, and the archival and public records functions of the Keeper of the Records of Scotland, including maintaining the archives (including records of government and the courts) as one of Scotland's five National Collections.

In 2017-18 we will:

• continue progress towards the next Census (in 2021) as Scotland's richest source of demographic information, and in particular procuring a variety of systems and services to support its successful delivery;
• continue to produce trusted statistics including demographic estimates and projections on Scotland's population and households;
• ensure information of historical importance produced in digital format can be preserved for posterity by designing a new Digital Preservation service, and in particular implementing both minimum bit preservation and web archiving solutions;
• extend digital access to our family history records including the re-designed online ScotlandsPeople service to improve the customer experience and develop new and existing markets; and
• continue to play a leading role in progressing the Data Linkage Framework strategy to securely deliver data research projects that benefit the public.